Center Raises Concern Over FG’s Failure To Service 2024 Capital Projects
- CERA criticized the Federal Government’s failure to pay contractors under the 2024 budget, citing loan defaults, layoffs, and reduced economic activity
- Impact on families and trust: The crisis has left families struggling with basic necessities and eroded public trust, discouraging investor confidence in Nigeria
- Call for urgent action: CERA urged the government to prioritize contractor payments, implement transparent financial processes, and act swiftly to restore stability
The Centre for Economic Reforms in Africa (CERA) has voiced grave concerns about the Federal Government’s inability to pay local contractors for projects completed under the 2024 budget.
In a statement signed by its Director, Dr. Martins Tayo, the organization highlighted the wide-ranging economic and social impacts of the government’s failure to fulfil its financial obligations.
FG slammed for failing to service 2024 capital projects
Photo credit: @officialABATSource: Twitter
Dr. Tayo described the situation as dire, stating that many contractors are now facing severe financial difficulties.
“The impacts of this failure on the economy and businesses are far-reaching. “The lack of payment to contractors has limited their ability to invest in new projects, expand operations, and create jobs,” he said.
He explained that the resulting financial distress has led to defaults on loans, widespread layoffs, and reduced economic activity, creating a ripple effect across various sectors.
Dr. Tayo noted that the consequences extend beyond the business community to affect ordinary Nigerian families.
“Many families are struggling to make ends meet due to the loss of jobs and income resulting from the government’s failure to pay contractors.
“The lack of payment has also affected access to basic necessities like food, healthcare, and education,” he lamented.
According to CERA, the government’s inability to meet its financial commitments is undermining public trust and investor confidence.
“This failure has eroded trust in the government’s ability to manage public finances. It may also discourage local and foreign investors from partnering with the government, given its poor track record of meeting financial obligations,” Dr. Tayo said.
He warned that if left unaddressed, the situation could lead to increased social unrest and protests.
“As more businesses struggle to stay afloat and workers lose their jobs, the social fabric of the country may begin to fray,” he added.
CERA urged the Federal Government to take immediate action to resolve the crisis. The Centre recommended:
“To boost liquidity and rebuild trust in the government. Including a timeline, payment modalities, and transparency in financial processes. The government must act swiftly to address this crisis and restore economic stability,” Dr. Tayo concluded.
Source: TheTalk.NG
